ARGENTINA: Argentina will pay over $3.52 billion to holders of GDP warrants as scheduled

Record ID: 447227

  • Title: ARGENTINA: Argentina will pay over $3.52 billion to holders of GDP warrants as scheduled
  • Date: 13th December 2012
  • Summary: BUENOS AIRES, ARGENTINA (FILE) (REUTERS) VARIOUS OF BUENOS AIRES STOCK EXCHANGE SCREENS SHOWING STOCKS INSIDE BUENOS AIRES STOCK EXCHANGE PEOPLE WORKING AT THE STOCK EXCHANGE
  • Embargoed: 28th December 2012 12:00
  • Keywords:
  • Location: Argentina
  • Country: Argentina
  • Topics: Economy
  • Reuters ID: LVA2A6IX7E2O04V2DA9UCSIAYJC5
  • Story Text: Argentina will pay just over $3.52 billion to holders of the country's GDP warrants as scheduled on Monday, Economy Minister Hernan Lorenzino said on Thursday (December 13).
    "The important thing is to emphasize that once again and despite all the forecasts, despite all the sensationalist news that is amplified through the media, today Argentina has once again fulfilled its obligations and even more importantly, we are going to continue fulfilling them," said Lorenzino.
    Rumours of a possible default made some investors uneasy and conjured up memories of Argentina's 2001 peso crisis.
    "If today Argentina decided to deal with the total debt payment to the private sector, the central bank's international reserves could do that. This is obviously just a hypothesis, we are talking theoretically, but it shows the solidity, the strength and the results of this debt payment policy," he added.
    Monday's debt payment was thrown into doubt by an October U.S. court ruling that said the country violated a bond provision requiring it treat all creditors equally when it paid the exchange bondholders without paying "holdout" creditors who spurned the debt restructurings and sued to be paid in full.
    However, an appeals court granted Argentina a reprieve last month, quelling fears of a default on Monday's GDP warrant payment that arose from the idea that U.S. courts could have disrupted the payment to enforce the October ruling.
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